One of the main indicators of any “true” democracy is freedom of the press. Something Costa Ricans can feel proud about is the right to express their opinions in any media. Costa Rica is ranked 19 out of 179 countries in the world and second only to Uruguay in Latin America when it comes to freedom of the press. Panama ranks 113 and Honduras near the bottom at 134 in the world. The recent killing of Honduran journalist Erik Martinez marked another low point in what is considered the most violent country in the world. Eighteen journalists have been murdered there.

In any country where the media can keep its people informed with sincerity and with respect for the truth, without pressure from the government or any other segment of the population or without threats, the country and everything from the economy to the society benefit.

When the media is free to publish what they want everyone wins. No matter how bad the news may be, it must be published to keep the people informed. In some countries the truth can never be told because there is no freedom of the press. Reporters are often murdered for telling the truth. Mexico is another country where many reporters have been killed for reporting the truth. Fortunately, in Costa Rica this problem does not exist.

The freedom we enjoy here is what sets this country apart from its neighbors, most countries in Latin America and contributes to the country’s stability and good quality of life. It is not not surprising, therefore, that Costa Rica is one of the best choices for retirement and living in Latin America. Many places like Ecuador, Nicaragua and Panama claim to be the next Costa Rica. However, when all is said and done there is only one Costa Rica.

A few days ago I ran into a couple of friends in downtown San José. One of them, Bob, has lived in Costa Rica for over 20 years. My other friend, Burt, has resided here for almost 16 years. Both are very successful businessmen and know Central America well. Bob owns two of the largest travel agencies in Costa Rica and Burt is one of the most respected estate brokers in the country.

We spent a couple of hours talking at length about Costa Rica, Nicaragua and Panama the other day. Bob was involved in Nicaragua for a couple of years where he had investments. He told me that one of best decisions he ever made was to sell all of his properties in Nicaragua. He said that it was a pain in the butt to do business there and that corruption was rampant. He told me the story of an American friend that had to be evacuated to the States because of a major medical emergency. He said that his friend almost died while waiting at the airport in Managua because custom officials wouldn’t let the air ambulance depart without paying bribes.

Another big problem in Nicaragua is Ortega’s relationship with Hugo Chávez, Venezuela’s crazed president. Ortega has become very dependent on Chavez’s money to pay for Nicaragua’s many social programs. At the same time Ortega has turned down economic support and loans from other countries because of his allegiance and dependence on Chavez’s handouts. Most of Nicaragua’s traditional lenders feel offended by this and probably won’t offer the country loan money in the future. The country has also developed a dependency on Venezuela’s oil and is heavily in debt to Venezuela because much of the oil was purchased on credit.

People may not know that Chavez has terminal cancer. When he dies there is a good chance Venezuela will discontinue or reduce aid to Nicaragua thus undermining some of the latter’s social programs which could mean big trouble as the masses grow restless.

So basically what we have is a possible panorama of social unrest and hard economic times on the horizon.

Why would anyone in the right mind want to retire in Nicaragua given the circumstances above?
Both Bob and Burt think that with a lot of luck and political and economic stability that perhaps in 40 years Nicaragua could come close to being what Costa Rica is at present.

As for Panama my friends think that outside of humid and crowded Panama City, the isolated town of Boquete in the north and some incentives for retirees, the country basically has very little to offer foreign retirees. The quality of life is so much better in Costa Rica.

I couldn’t agree more.

Recently I meet with an astute European businessman who has lived in Costa Rica for over forty years. He also spent a couple of years residing in Nicaragua when he was in the fishing business. After living in the area for so long he really knows both countries like the back of his hand.

During our most recent conversation my businessman friend mentioned that he had just been in Nicaragua to attend a wedding of one of his wife’s relatives (His wife is originally from Nicaragua but has live in Costa Rica for over 25 years). He mentioned that the heat in Managua was unbearable and only after a few days there he yearned for the spring-like weather of Costa Rica’s Central Valley.

My friend also commented that nothing has really changed in Nicaragua since the last time he visited there a few years ago. Granted the cost of living in lower than that of Costa Rica but the quality of life just can’t compare. Nevertheless, Nicaragua still continues to attract backpacking tourists and retirees on a small budget.

Here are some other factors to consider when trying to decide between Costa Rica and Nicaragua for retirement and living.

1. Nicaragua is the poorest country in the Western hemisphere after Haiti.
2. The country has an army which it has to support at the expense of its poor people.
3. The government is left-wing and pro-Castro/Hugo Chavez..indeed a vary dangerous sign. Political stability is in question. Many properties were expropriated in the past by the same people who are in power now.
4. The country’s weather can’t compare to Costa Rica’s climate.
5. Natural disasters, including earthquakes and hurricanes, have devastated the country over the years.
6. Despite having a couple of good hospitals the country’s rich often come to Costa Rica or go to the States to seek specialized medical treatment
7. Nicaragua will never be the “New Costa Rica” as many of the country’s real estate and business people will try to make you believe. The country does not have the same geography as Costa Rica and one-third of it is inaccessible. The only cool climate that is similar to Costa Rica’s is in the north around Matagalpa. Costa Rica has many more places which are suitable for living.
8. The country has a bloody political history.
9. If the country was good, Why have over 500,000 Nicaraguans migrated to Costa Rica in search of a better life?

I rest my case.

The Índice de Confianza del Consumidor (ICC) – Consumer Confidence Index – quartely survey by the Escuela de Estadística de la Universidad de Costa Rica, showed a change after a year of economic downturn. The most recent survey in February 2011 showed a 2.5% increase in consumer trust, bringing the index to 50.3%.

UCR Professor, Johnny Madrigal Pana, who headed the survey, explained that with consumer confidence comes spending and incurring of debt. In contrast, if consumers are pessimistic, they do not spend or get into debt. Pana said that the downward trend that was normal for 2010 changed its course and began to rise moderately, though not as high as the previous year.

Those who answered the survey believe that unemployment will be decrease, though poverty levels will remain the same.

Pana explained that consumers have strengthened their tendency to buy durable goods such as a car of home. The future expectations are very stable compared to previous surveys and current economic conditions tend to show improvement, according to the professor.

Many retirees who moved to Costa Rica because of the economic downturn are pleased by the good news above and happy to be living in a country that wasn’t impacted like the U.S. was by the recession. Costa Rica had no money invested in Wall Street nor in the sub-prime housing market. In fact, sub prime mortgages do not exist here. Also, “The bigger they are, the harder they fall.” All of the counties which were hit hard by the recession have large economies and industries like the U.S. Costa Rica only has 4.3 million people, is virtually self-sufficient because we grow almost everything we eat here and the people are used to living with a lot less than the more materialistic larger nations.

All of this makes retirement here a no-brainer when you also consider the cost of medical care, transportation, utilities and rents.

Retirement, is the beginning of a new stage in one’s life, the start of a second adulthood. Financial planning for retirement is very important because nobody can predict the future because you don’t know what will be return on your savings or what will be the inflation rate when you actually retire. How much money will be available through social security, if social security exists when you retire.

Some are lucky enough to have invested in the right property at the right time and have good retirement programs, affordable health insurance, stocks, bonds or IRAs to ensure a good quality of life during their retirement years. Unfortunately, most of us start thinking about retirement planning when it is too late. Effective retirement planning requires foreseeing the type of life you wish to lead after retirement. Retirement is like playing second and longest innings of one’s life. Enjoying this phase comfortably and peacefully requires certain basics of retirement planning.

In the past, Social Security Benefits, Personal savings and Defined Benefit Pension were considered main resources for leading a comfortable retired life. Now a days, one cannot solely depend on these resources. This is the era of early retirement which could be due to health reasons or layoffs. Thus means that you may have a shorter working career and longer retirement as compared to the earlier generation. When you retire from your job you, stop getting your paychecks. Apart from depending on your savings, you certainly need some regular source of monthly income to take care of your day-to-day expenses. Getting a part-time job or starting a home-based business is good option to help you lead a happy and comfortable retirement life. The only problem with working full-or part time is that you’ll not be able to enjoy your golden years and pursue your hobbies during your second adulthood.

Another major source of funding that people have counted on for retirement is the equity built up in their homes. Many retirees expected to sell their appreciated home asset and use those funds for a new acquisition in a warmer climate and then bank the rest for additional income in the golden years. We all know what has happened to the value of most homes in North America. Retirees planning to free up cash for a retirement purchase will likely find the numbers lacking.

Many people have come to realize that they may have not planned well and may be a little short on money to maintain their present lifestyle. A simple solution is to try to lower their standard of living and be more frugal in their own country to compensate for poor financial planning and/or bad investments. They can downsize to a smaller home, move to a more affordable but less suitable area, give up their yearly vacations, fire the gardener and cut back on other areas of their life to just scrape by. But what if they could move to another country with the same amount of income and improve their lifestyle dramatically instead of reducing it?

Living in the right country outside the United States can make all the difference in the world between just subsisting and maintaining the lifestyle to which you are accustomed. Costa Rica offers a viable retirement alternative. The idea of living overseas is not new. The huge number of Americans due to retire is staggering. Currently almost 40 percent of the population of the United States is over 50. By 2020, half the U.S. population will be over 50. Most Americans ages 41 to 59 say they will move when they retire.